Google pulled the Grooveshark app from the Android Market this week, in the wake of complaints from major label record companies. According to sources cited by CNET, label execs complained that the app was a violation of copyright law.

The move comes at a time when the company is reportedly talking with labels ahead of the launch of a rumored music service that would compete directly with Amazon’s recently launched Cloud Drive and a yet-to-be announced revamped MobileMe from Apple.